Netflix Inc.

Introduction

Netflix Inc. is a renowned provider of internet on demand on streaming media that is available to a majority of viewers in southern and northern parts of America, Australia, Europe, Germany, and Belgium among other areas. It is known mostly because of its uniform rates charged on DVDs sent through email that is a common feature in the United States. The company was established in 1997 California at Los Gatos. It then began its services depending on the subscriptions in 1999. In 2009 the company was in a position to offer up to 100,000 DVD titles collections. This was more than the 10 million known and available subscribers. By September 2014, it was made public that the company had its subscribers in over 40 countries and that it had intentions to expand their services even to countries not reached. Netflix Inc. has no specific official mission statement that has been published. However, during the Dublin founders conference that was held in October 2011 , the CEO of the company who happen to one of the cofounders of the company stated a clear vision of the company that is future oriented. He stated that the future vision of the company among others included, there attempt to be one of the best global or worldwide entertainment service distributor. He also stated that its vision was to lead in licensing entertainment content, create accessible markets while targeting the film makers, and to assist creators of contents throughout the world in coming up with a global audience.

Discussion

In an attempt to explain the company's mission statement, the CEO referred to the promise made about its brand that is considered to be a quest. He stated that, the company promises its customers stellar services, its suppliers to be considers as one of the most valuable partners, its investors sustainable profitability, and its employees the ability to lure a great impact. Furthermore, the company has published openly its values that explain clearly the principles that give guidance to its employees on day to day activities and decisions. Some of the values highlighted include; productivity, judgment, creativity, honesty, intelligence, communication, reliability, selflessness, and passion. It is believed that these are some of the issues that drive the company to meet its vision and mission. This indeed is trues because since the establishment of the company to date, it has been able to make several pronounced milestones.

Netflix can come up with a mission such as, "to organize global information and have it accessible in a way that is easy and useful to the target customers, while at the same time giving an ample working environment to the employees and its suppliers". It can also have a vision statement such as, "work to be the world's leading company as far as licensing, distribution, and content creation in entertainment is concern'. This will enable to customers or clients to enjoy their value for money. Some of the identified opportunities of the company include the fact that, on careful analysis of the market it is evident that there are three immediate and main opportunities for Netflix. All these are centered on the idea of its original content. First, the popular cord cutting trend that is common among the consumers has led to a new demand for TVs that are based on Internet.The increased use of devices that are connected with Internet for the consumption of media have assisted enormously in increasing subscribers as more people are from time to time "hooked up".

This acts as the greatest opportunity for Netflix Inc. The need for a perfect media streaming fits the company's ability to offer content digitally. In addition, the company's exclusive series are available for viewing by consumers anytime, anywhere, at pleasure. This is advantageous instead of having a restricted broadcast channels or hours. Them having a natural tendency of allowing movement to desired content online, and the company's unique ability to completely produce and distribute over the Internet is also a great opportunity. At a positive note, the increasing need for own shows are clear in Netflix's Marketing expenses, which have gradually declined gone down in the last four quarters. In Q4, in 2012 it stood at just 12.4% of the company's sales. This can be due to the company's original content providing and the invaluable word of mouth campaigns. As a result, the company should stand firm and substitute some of their marketing budget and streamline relevant funds to production of original content. Finally, the issue of natural original content has assisted the company in facilitating greater international growth. Currently, the company has some global markets, and because a majority desire American content, it is evident that have the potential of attracting a large number of subscribers.'

 

Currently, the company is in the process of developing a content that fits the Latin America. It is evident that the ability of the company to produce original content will enable them to meet the international interest as it part takes its global role. One of the biggest potential threats to Netflix is the fact that Internet service providers (ISPs) may end up discriminating the company if and in situations when network neutrality laws does not work accordingly, especially in the US. For instance, ISPs might consider it their own financial interest to slow the content traffic against competitors like, for Netflix to gain a competitive edge over related competitors. Although the company's own general counsel avid Hyman argues that the "bandwidth is cheap and plentiful and will only grow more so with time, there is no good reason for bandwidth caps and fees to take root", the possibility is still greatly there that such discriminatory tactics could take place and thus why this is one of the three trends I've chosen to focus further on.

Some of the other threats include the company's competitors if a situation arises that makes them in a position able to offer a better value to its consumers. Currently, it is worth noting that Amazon has posed the greatest threat since 2011 the time when it started giving streaming's as among its prime designed services to give shipping for free to its subscribers. From the same report by Trefis, it was evident that despite the fact that Comcast's Xfinity Service has less content compared with Netflix it main competitor, its prices are low hence motivators for direct competition. As a way of coping with the threats, it is mandatory for the company to redirect its resources from delivery of service with intentions of enhancing its strength. The company's ability to provide a streaming content that is ever streaming in nature will enable them to expand and attract a wide market and customer share.

Concerning the company's competitors, come are wide spread as others are less spread. The company as well has one of the largest content library that is available to its audiences with titles over sixty thousand when compared to Amazon that has thirty eight thousand. Furthermore, Positive shares at the moment weigh in favor of Netflix thus acting as one the company's strengths. Coming to stock prices, the stock price of NFLX has been very volatile recently, because, in October 2012, it was trading at $50 but currently it is treading at $180. Despite the volatility, the originality of the content has not been interfered with and the company has come up with plans of ensuring that the stock price continues to climb further. Weakness associated with the company includes the fact that, although there is a rise in the company's stock value, it is still undertaking large amounts of debt financing to be able to fund the enormous licensing packages used to get content from other providers. While this does in the short run guarantee our success in terms of pure numbers when referring to library size, it also enhances our credit risk and runs the danger of impacting further loans. As a result of the company's need to continue with the production of original and exclusive, the company does not need to have its ability impacted with money only. In addition, the company's physical media delivery service has been undergoing massive losses in the recent past. The delivery service offered by the company used to be the cornerstone of its business but lately became sideline to their function. In the past two years the company's CEO Focused that marketing for DVDs and that there existed potentials of having Blue ray Discs declining, and in deed this was true. On the other hand, the US remains recalcitrant in considering and following the rest of the world's idea. Since the company's service is accessed by consumers over ISP, the Internet connections, the ongoing debate results have enormous impact on the company. The lack of regulations, leads to terrifying possibilities, such as having ISPs charging tiered pricing on consumers for accessing some services. The whole issue of having Trans media have a close relation with a cross platform storytelling.

On the other hand, the old storytelling model is made up of a movie, and then followed by a novel of the film and may be a rehearsal of the plot. In the new world of Trans media, has several possibilities of opening up platforms for continuity of the story instead of mere duplication of the same. With working hours per week that are over three billion spent on video games, the company's idea of ensuring continuity of stories will be facilitated through other media platforms. Currently, having customers to pay twice the amount paid by our competitors clients poses a great challenge of not being in a position to have clients subscribing for our content. On the other hand, an ISP may request that instead of transferring costs to consumer, the company can consider making payments on behalf of the clients to be able to reach clients without any interruption. Since trans media properties are highly video game centric, this provides us with an excellent, positive opportunity to integrate casual and mobile games AKA trans media elements into our original series, creating an even further value for subscribers who enjoy our I-house programming. In summary, adapting of new strategies will help the company in responding in an appropriate way to beneficially deal and the trend. Considering the fact that most of the consumers have decided to cut the cord and prefer the use of internet only TV offerings, there are frustrations that they have experienced, as well.

 

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Company's Mission

In an attempt to explain the company's mission statement, the CEO referred to the promise made about its brand that is considered to be a quest. He stated that, the company promises its customers stellar services, its suppliers to be considers as one of the most valuable partners, its investors sustainable profitability, and its employees the ability to lure a great impact. Furthermore, the company has published openly its values that explain clearly the principles that give guidance to its employees on day to day activities and decisions. Some of the values highlighted include; productivity, judgment, creativity, honesty, intelligence, communication, reliability, selflessness, and passion. It is believed that these are some of the issues that drive the company to meet its vision and mission. This indeed is trues because since the establishment of the company to date, it has been able to make several pronounced milestones. Netflix can come up with a mission such as, "to organize global information and have it accessible in a way that is easy and useful to the target customers, while at the same time giving an ample working environment to the employees and its suppliers'.

It can also have a vision statement such as, "work to be the world's leading company as far as licensing, distribution, and content creation in entertainment is concern'. This will enable to customers or clients to enjoy their value for money. Some of the identified opportunities of the company include the fact that, on careful analysis of the market it is evident that there are three immediate and main opportunities for Netflix. All these are centered on the idea of its original content. First, the popular cord cutting trend that is common among the consumers has led to a new demand for TVs that are based on Internet. The increased use of devices that are connected with Internet for the consumption of media have assisted enormously in increasing subscribers as more people are from time to time "hooked up".

This acts as the greatest opportunity for Netflix Inc. The need for a perfect media streaming fits the company's ability to offer content digitally. In addition, the company's exclusive series are available for viewing by consumers anytime, anywhere, at pleasure. This is advantageous instead of having a restricted broadcast channels or hours. Them having a natural tendency of allowing movement to desired content online, and the company's unique ability to completely produce and distribute over the Internet is also a great opportunity. At a positive note, the increasing need for own shows are clear in Netflix's Marketing expenses, which have gradually declined gone down in the last four quarters. In Q4, in 2012 it stood at just 12.4% of the company's sales. This can be due to the company's original content providing and the invaluable word of mouth campaigns. As a result, the company should stand firm and substitute some of their marketing budget and streamline relevant funds to production of original content.

Finally, the issue of natural original content has assisted the company in facilitating greater international growth. Currently, the company has some global markets, and because a majority desire American content, it is evident that have the potential of attracting a large number of subscribers. Currently, the company is in the process of developing a content that fits the Latin America. It is evident that the ability of the company to produce original content will enable them to meet the international interest as it part takes its global role. One of the biggest potential threats to Netflix is the fact that Internet service providers (ISPs) may end up discriminating the company if and in situations when network neutrality laws does not work accordingly, especially in the US.

For example, ISPs might consider it their own financial interest to slow the content traffic against competitors like, for Netflix to gain a competitive edge over related competitors. Although the company's own general counsel avid Hyman argues that the "bandwidth is cheap and plentiful and will only grow more so with time, there is no good reason for bandwidth caps and fees to take root", the possibility is still greatly there that such discriminatory tactics could take place and thus why this is one of the three trends I've chosen to focus further on. Some of the other threats include the company's competitors if a situation arises that makes them in a position able to offer a better value to its consumers. Currently, it is worth noting that Amazon has posed the greatest threat since 2011 the time when it started giving streaming's as among its prime designed services to give shipping for free to its subscribers. Netflix Inc. is a renowned provider of internet on demand on streaming media that is available to a majority of viewers in southern and northern parts of America, Australia, Europe, Germany, and Belgium among other areas. It is known mostly because of its uniform rates charged on DVDs sent through email that is a common feature in the United States. The company was established in 1997 California at Los Gatos. It then began its services depending on the subscriptions in 1999. In 2009 the company was in a position to offer up to 100,000 DVD titles collections. This was more than the 10 million known and available subscribers. By September 2014, it was made public that the company had its subscribers in over 40 countries and that it had intentions to expand their services even to countries not reached. Netflix Inc. has no specific official mission statement that has been published. However, during the Dublin founders conference that was held in 2011 October, the CEO of the company who happen to one of the cofounders of the company stated a clear vision of the company that is future oriented. He stated that the future vision of the company among others included, there attempt to be one of the best global or worldwide entertainment service distributor. He also stated that its vision was to lead in licensing entertainment content, create accessible markets while targeting the film makers, and to assist creators of contents throughout the world in coming up with a global audience.

Conclusion

The company's mobile applications, although good, can face a challenge of the need to present a better and much seamless experience to those on tablets, especially in utilizing screen viewing modes such as Airplay streaming meant for big TV screens. In addition, the login screen change proposed will allow social credentials as authenticators and at the same time minimize the screen real estate necessary for login by including high, large resolution tiles of new contents to encourage service usage. They further suggest value added features such as dragging and dropping content posters to dynamic queues watch and lists Skeuomorphic animations, and other comprehensive friendship connections, together with the ability to view what friends on Twitter and Facebook have after watching their recommendations, and share the same with others. Viewers are allowed to tap the button at pleasure in a show so that they can tag moments on timeline that is relevant with quotes obtained from that scene or to make a comment concerning whatever they saw. Other friends that comes later watching the content will be able to see such tags, thus commencing a conversation between the partners and at the same time encourage more social conversation through the app.

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Nov 15, 2018 in Research
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